Tesla is known to be one of the major EV automakers in the world. Unknown to many, it also has a thriving business in battery storage. It has an ongoing project of a huge 100 MW battery storage in Texas.
According to Bloomberg, Tesla is building a huge 100 MW battery storage in Texas. The project is in Angleton, a town about 40 miles south of Houston, says Timothy Lee of arstechnica. Gambit Energy Storage, Tesla’s subsidiary, is installing the company’s modular Megapacks. The project is expected to operate by June according to the “Electric Reliability Council of Texas” (ERCOT).
100 MW battery storage in South Australia
It is unknown yet why Tesla is somewhat secretive over this project. And why it is using a subsidiary as a front. However, this is not the first time Tesla does it. The company built a 100 MW battery farm in South Australia last 2017. Currently, it supplies Pacific Gas and Electric in California with Megapacks for its ongoing Bay Area Moss Landing project.
It seems that the project came at the right time. Last month, Texas experienced without electricity due to the unprecedented winter weather. Causing Musk to mock ERCOT with a sarcastic tweet. ERCOT manages approximately 90% of the total power grid of Texas and has been under intense pressure after the unexpected incident last month. One of Musk’s followers on Twitter asked him whether Tesla is coming up with a battery storage project like the one Tesla built in South Australia. And Elon Musk’s answer is a resounding “YES”.
Elon Musk is concerned about the electric grid in Texas, knowing that he recently relocated to the state. And both SpaceX and Tesla are enlarging their footprints in Texas. In the Austin area, the company is building a car factory. For quite some time now, SpaceX has built a testing facility in McGregor, Texas. Recently, SpaceX has been increasing its capital investment into its Boca Chica launch facility somewhere south of the state.
Demand is high for a huge battery storage
Eventually, there will be a great need for huge battery storage facilities as more states are trying to shift to renewable energy. Energy powered by solar and wind will require a lot of huge battery storage. Currently, there are not enough storage facilities to cater to the demand.
At present, most of the energy has been supplied by natural gas-powered plants. And because this is not sustainable, power will someday become extremely expensive. Batteries can fill up the gap and eventually take up more grid. When supply is high due to seasonal low consumption, the batteries can store up excess power. And they will be distributed to fill the gap during peak demand.
As batteries get cheaper, eventually installing a larger battery will become more economical. That is why expectations are high for more utility-scale battery storage facilities. With huge potential having too big demand with very little supply yet. Giving huge opportunities to capital investors.
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